Pepe (PEPE) has witnessed a notable price decline of 9%, sparking discussions about shifting market dynamics. Concurrently, despite this trend, a cryptocurrency whale has redirected attention from Shiba Inu to Pepe Coin, signaling a potential shift in market dynamics.
Lookonchain, a platform tracking on-chain transactions, highlighted the whale’s strategic maneuver. The investor accumulated 68 billion Pepe Coins. This shift in focus comes after the whale incurred substantial losses in Shiba Inu, underscoring the unpredictability inherent in cryptocurrency investments.
Someone withdrew 67B $PEPE($1.02M) from #OKX 30 mins ago.
It is worth noting that this guy lost $2.55M($-85.5%) in $SHIB before.
He bought 40.9B $SHIB($2.98M) at high price points during the bull market, and when the bear market came, he sold all of it at a loss.
Can he make… pic.twitter.com/qo0dRbSVXF
— Lookonchain (@lookonchain) May 29, 2024
The whale’s withdrawal of 67 billion Pepe Coins, valued at $1.02 million, from the OKX exchange marks a notable change in investment strategy. Previously, the investor had bought 40.9 billion SHIB at peak prices, only to sell at a loss during a subsequent bear market, resulting in a loss of $2.55 million, or 85.5%, in SHIB trading. This strategic pivot raises questions about the investor’s intentions and the potential for profit in the Pepe Coin market, igniting speculation within the crypto community.
Market Response and Price Movements
Despite the influx of investment, Pepe Coin has experienced a price decline, contrasting sharply with SHIB’s notable gains of over 9%. The mixed market response underscores the volatility inherent in the cryptocurrency landscape. However, with the spotlight now on Pepe Coin, there is renewed optimism among its supporters regarding prospects. The whale’s accumulation of a substantial amount of Pepe Coins could signal confidence in its long-term viability, attracting more investors and bolstering its market position.
Despite the recent price dip, Pepe Coin has witnessed robust gains over the past few days, reaching its all-time high. Several large PEPE transactions have also been observed, indicating growing investor confidence in the cryptocurrency.
PEPE/USD 24-hour price chart (source: CoinMarketCap)
As of press time, Pepe Coin’s price was down 9.37%, exchanging hands at $0.00001525 after touching a 24-hour high of $0.00001689. Despite the short-term price fluctuation, Pepe Coin has experienced a weekly surge of about 13% and a 120% increase over the last 30 days.
Analysis of Pepe Coin Price Trends
An analysis of Pepe Coin’s price trends reveals a steady recovery over the past six weeks, driven by an ascending trendline. However, with Bitcoin consolidating above $65,000 for over a week, the altcoin market has shown signs of weakening bullish momentum, impacting Pepe Coin’s trajectory. The formation of short-bodied candles and decreasing trading volume indicate a potential slowdown in its upward trajectory.
Moreover, the PEPE development team’s activity on exchanges, including the sale of tokens after price surges, adds to the complexity of Pepe Coin’s price dynamics. The team’s actions, coupled with profit-taking activities by wealthy investors, contribute to the bearish technical outlook for Pepe Coin. Notably, the supply of PEPE held by entities with large token balances has decreased, indicating selling at local price peaks, while smaller investors have increased their holdings.
Potential Risks and Outlook
As Pepe Coin faces growing bearish momentum, there are concerns about a potential price correction in the coming weeks. The divergence between rising prices and falling daily relative strength index (RSI) suggests a weakening upward momentum, similar to the market trends preceding a 40% crash in January.
PEPE/USD price chart (source: TradingView)
The daily RSI crossing over 70, an overbought area, further increases sell-off risks in the PEPE market.
In the event of a correction, Pepe’s price may fall toward its 50-day exponential moving average (50-day EMA), down approximately 40% from current levels. Conversely, a continued uptrend could see Pepe Coin testing higher price levels. However, wealthy investors’ ongoing profit-taking activities and large token withdrawals’ impact on overall supply dynamics add to Pepe Coin’s correction risks in the near term.
